Friday, April 15, 2011

Doing Business in China

You can disagree with me, but China is the number one world power. China is buying our debt and manufacturing the goods we used all on their own terms. Global companies, financial in particular, are setting up office abroad. This said, it is not always easy doing business with China. Do not think for one minute that the Obama administration and the class warfare he is creating will make America any better or any stronger or bring the companies or the jobs back.

Shareholders of American Superconductor Corp. responded in shock this month when the company disclosed that its largest customer, Chinese wind turbine maker Sinovel Wind Group Co., had refused to accept contracted shipments of turbine components.
But for those familiar with the Chinese view of business contracts, the move was less surprising. “For Western companies, when you sign a contract, that’s the end of the negotiation,” said Aimin Yan, faculty director for the international MBA program at Boston University and a native of China. “From the Chinese perspective, it can be just the beginning.”
The troubles for Devens-based American Superconductor (Nasdaq: AMSC) underscore striking differences between U.S. and Chinese business practices — differences that many people in the United States still don’t grasp, despite the rapidly growing importance of the Chinese economy, according to experts on Chinese business.

1 comment:

Sorry. I have to disagree with you on this. The US economy is more than three times the size of the Chinese economy, and it will be years (if ever) before the Chinese catch up. I remember back in the 1980s hearing that Japan was the economic powerhouse of the world. This was not true then, or ever, as the Japanese economy was much smaller than the US economy then and now. In regards to vitality, and not just numerical strength, shortly after people started crowning Japan as the great economic powerhouse, its economy collapsed, and has never recovered. Though the details are somewhat different, China is following exactly the same arc, both economically and in the real of public perception.The problem with the US is political, and not economic. However, the political weakness of the US is bleeding over into the economic realm and causing trouble.